The Federal RD Budget Process 101 Matt Hourihan
The Federal R&D Budget Process 101 Matt Hourihan November 5, 2018 For the AAAS Leadership Seminar AAAS R&D Budget and Policy Program http: //www. aaas. org/rdprogram/rd-budget-and-policy-program Copyright © 2015 American Association for the Advancement of Science
The Federal Budget is Kind Of a Big Deal § Major impact for R&D and innovation: most basic research, and most university research, is federally funded § “Politics is who gets what, when, and how. ” - Harold Lasswell § Public dollars are scarce resources § The budget process is ultimately a negotiation between competing interests (and their proxies) in a decentralized system § Values and ideals; political constituencies and interests; decentralization; tradeoffs; incrementalism; and even Copyright © 2015 American Association for the Advancement of Science 2
The Budget Process at a Glance Executive Branch Legislative Branch White House Agencies Budget Committees OMB OST P February Budget Request Budget Resolution Appropriations Committees & Subcommittees SPENDING BILLS (x 12) § Timeline is 18 months or more from the start of agency planning to completion of appropriations and start of the fiscal year on October 1, however… § Congress hasn’t gotten appropriations finished on time since 1996 Copyright © 2015 American Association for the Advancement of Science 3
Agencies in the Budget Process Executive Branch § Agency process kicks off 18+ months in advance. Generally : § Developing strategic priorities, objectives (winter/early spring) § Then developing and iterating concrete, detailed program proposals and scenarios (spring/summer) § Often bottom-up in the details: small units larger units agency leadership/CFO § Ingredients include: § Agency head and staff judgment § External input from advisory or review committees, workshops or meetings, NAS decadal surveys, Congress, etc. § Incrementalism: last year’s budget influences next year’s § Performance metrics? White House Agencies OMB OST P Copyright © 2015 American Association for the Advancement of Science 4
The White House in the Budget Process Executive Branch § White House Agencies OMB = Office of Management and Budget § Spring: Guidance memo to agencies § Fall: Thorough, detailed review of agency OMB OST P § § OSTP = Office of Science and Technology Policy § Summer: joint memo with OMB outlining § § § budget submissions, followed by “passbacks” and appeals OMB’s job is to constrain spending broad S&T priority areas for investment Advice (with PCAST) and coordination to President, agencies, OMB, NSTC on science investments and strategies High-level political, spending, or legislative priorities Negotiation with agencies Things must wrap in January This is all truncated in transition years Copyright © 2015 American Association for the Advancement of Science 5
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The Budget Process at a Glance Executive Branch Legislative Branch White House Agencies Budget Committees OMB OST P February Budget Request Budget Resolution Appropriations Committees & Subcommittees SPENDING BILLS (x 12) § Congress has the Power of the Purse § Does the President’s Budget even matter? Yes and no… Copyright © 2015 American Association for the Advancement of Science 8
The Budget Resolution § Established by the 1974 Congressional Budget and Impoundment Control Act § Intended to reassert, and broaden, legislative control over the budget § Also created the House and Senate budget committees, which write the Resolution § § § Budget Committees Budget Resolution Overall framework: § § § Legislative Branch Revenue, deficit, and total spending targets Typically includes programmatic recommendations Key for science spending : discretionary spending limit to govern appropriations Appropriations Committees & Subcommittees Isn’t law and can’t change law, but c an set up reconciliation process (i. e. tax reform) SPENDING BILLS (x 12) Best seen as a political document as much as a governing document § Partly because it isn’t always adopted… Copyright © 2015 American Association for the Advancement of Science 9
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Enter the Appropriators Executive Branch Legislative Branch White House Agencies Budget Committees OMB OST P February Budget Request Budget Resolution Appropriations Committees & Subcommittees SPENDING BILLS (x 12) Copyright © 2015 American Association for the Advancement of Science 11
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From Budget to Appropriations § Budget Resolution limits Appropriations Committee Chairs Subcommittees (302(b) limits) § Information gathering: § Hearings with agencies § “Dear colleagues” or other input from members § Constituents, experts, lobbyists § Subcommittee Committee Floor § Bills AND reports: Appropriations reports provide § § important guidance to agencies Can be amended throughout, subject to 302(b) caps Conference committees to resolve differences Senate can sometimes moderate changes Appropriators and their choices § “All politics is local” § Personal legislator interest § Public interest § Ideology and party preferences § Key: Getting a bill that can actually § Incrementalism helps pass (duh) Copyright © 2015 American Association for the Advancement of Science 14
Energy & Water Subcommittee House Senate Chair Mike Simpson (ID) Lamar Alexander Ranking Member Marcy Kaptur (OH) Dianne Feinstein (CA) § Tradeoffs: Balancing basic research and facilities, labs, tech portfolio, NNSA; also Army Corps, Bureau of Reclamation § NNSA funding has been a big priority of late § Office of Science: as basic science arm, generally supported in more bipartisan fashion § National labs help § Technology programs: Congress tends to fund when funding is available, but can also be first on the chopping block § Some value innovation programs more than § (TN) others Regional energy politics and economics Copyright © 2015 American Association for the Advancement of Science 15
Labor, HHS, Education Subcommittee House Senate Chair Tom Cole (OK) Roy Blunt (MO) Ranking Member Rosa De. Lauro (CT) Patty Murray (WA) § Deep divisions over public health programs, education, labor § But everybody loves NIH! § We have now had multiple years of § § § multibillion dollar increases Alzheimer’s, cancer, neuroscience, opioids among the big priorities lately Congress has so far protected NIH awardees from indirect cost changes, salary cap changes, etc Other programs also have their supporters: public health and preparedness matter (Bio. Shield, BARDA, CDC, etc) Copyright © 2015 American Association for the Advancement of Science 16
Commerce, Justice, Science Subcommittee House Senate Chair John Culberson (TX) Jerry Moran (KS) Ranking Member Jose Serrano (NY) Jeanne Shaheen (NH) § How to balance different missions? § NSF: many continue to value basic research § Disciplinary fights and national interest controversies? § NASA: recent priority (J-O-B-S) § Again: labs and research centers help § Balancing the science portfolio? § NOAA and NIST: some program elements more controversial than others (often for local reasons – i. e. Sea Grant) § NOAA: climate research funding can be a § source of dispute, of course NIST: lab programs have been supported, but industrial innovation/manufacturing programs can be a target Copyright © 2015 American Association for the Advancement of Science 17
The Budget Process at a Glance Executive Branch Legislative Branch White House Agencies Budget Committees OMB OST P February Budget Request Budget Resolution Appropriations Committees & Subcommittees SPENDING BILLS (x 12) Copyright © 2015 American Association for the Advancement of Science 18
The Budget Process at a Glance Executive Branch Legislative Branch White House Agencies Budget Committees OMB OST P February Budget Request Budget Resolution Appropriations Committees & Subcommittees SPENDING BILLS (x 12) “Please don’t veto us!” Copyright © 2015 American Association for the Advancement of Science 19
Other Legislative Appropriations Tools § Continuing Resolutions: often necessary to avoid a shutdown October 1 § …with depressing regularity § Length can vary, from a day to a year § Uncertainty? New starts? Spending slowdowns? § Omnibus (multi-bill package) § Or minibus, or megabus, or cromnibus, or… § Supplementals § i. e. Zika, Ebola, Hurricanes § Also war funding § Not subject to spending caps Copyright © 2015 American Association for the Advancement of Science 20
The Federal Budget Cycle § Gov’t is usually working on 3 budgets at a time § (though presidential transitions complicate things) Copyright © 2015 American Association for the Advancement of Science 21
Where Are We Headed? § FY 2019 appropriations: five bills done on time, fastest progress in 22 years § Defense, Energy, Labor-H, Veterans, Legislative Branch § CR in place for remaining seven bills until December 7 § Covers NASA, NSF, USDA, Commerce, others § FY 2020 and 2021: cap negotiations one more time § Who controls Congress next year? § Will widening deficit impact the negotiations? § Beyond the caps: what happens with the discretionary budget? Copyright © 2015 American Association for the Advancement of Science 22
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For more info… mhouriha@aaas. org 202 -326 -6607 http: //www. aaas. org/rd Copyright © 2015 American Association for the Advancement of Science 29
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